Consolidating credit card debt into a loan
However, it’s an important skill to manage if you find yourself struggling with expensive debt, and checking your score is the first step.
As a small business owner, your personal financial health is just as important as your business’s financial health.
Improvements in both areas make you a good candidate to consolidate your business debt.
A good business credit profile will generally have: Understanding business credit reports, how they work, and how you can build your business credit can be difficult.
A small business debt consolidation loan can lower your interest rates and reduce the size of your monthly payments.
They may even enable you to borrow additional working capital.
SBA loans help you lower your debt payments by offering lower interest rates and longer repayment terms than other term loans.
Smart Biz offers these SBA loans up to 0K and repayment terms up to 10 years.
Timeline #1 applies if you had good credit and took out a short term loan because you needed the quick-turnaround time of a short term loan provider.
That’s because you’ll likely be asked to personally guarantee any business consolidation loan.
The lender needs to feel confident that if your business were unable to make the payments, you’d personally be able to step in and make those payments.
Consolidating at the right time can get you lower interest rates, better repayment schedules, and longer terms.
Consolidating at the wrong time can waste your time, damage your credit, or get you a bad loan that can hurt your ability to borrow in the future.
It’s best to approach a lender about a business consolidation loan when your business finances (revenues & profitability) have a positive trend.